All Forum Posts by: Andrew Postell

@Hunter Gibson thanks for the post!  Lots of great agents in our market and @Joe Funari definitely fits that box of owning rental properties.  I have been a 20+ year investor.  Here to help if you or your friend need anything.  Thanks so much!

@Blanca Munoz thanks for the post.  Always great to hear from a fellow Texan.  You've got some really good responses above.  Keep learning and if you need anything feel free to reach out.  Those of us that are local can share with you what other local investors are doing in our market.  As @Joe Funari mentioned there are numerous free groups to attend here as well.  Lots of resources.  Keep learning!

@Aaron Fine what you need is a new build or construction loan.  There's specific products for what you are trying to do.

@Christian Maher you got some good posts above too.  There's probably no "do this" and it works for everyone so keep gathering different opinions.

The way I view a "good deal" might be different than how you view a "good deal"...so let's look at it from an "average" person's perspective.  One who may not know all of the more advanced techniques. 

A "regular, average" buyer would need to put 20% down on an investment property.  So, 20% of $145,000 = $29,000.  And then closing costs...of $10k?  Let's just use that for now.  So, $40k.

Did you come out of pocket more or less than $40k to execute here?  Because, if it's less...then how much less?  If you executed coming out of pocket $20k...that seems ok.  If you came out of pocket $50k...that's not ok,

See if you can work on that "out of pocket" number.  Take into consideration your refinance costs (you'll probably need to be prequalified to know that) and see where you sit.

Maybe that will tell us what we need to know.

@Nathan Frost thanks for the post!  Always great to hear from a fellow Texan.  If you are looking to sell one and keep the other, then you would need to refinance that other property.  That's how you avoid the "release clause" of the blanket loan. Reach out directly if you want to talk anything through.  Thanks!

@Hyeseong Park  a "foreign resident" can't co-sign for you...but if he is a legal resident, then it's possible.

@Jim Collins there is some nuance here....like how you are showing the properties on your tax returns...but all things considered, you should NOT have business debt held against you.  Again, the issues here would be if those properties were structured incorrectly or filed incorrectly....but I think it would certainly be worth having a conversation with a different lender about it.

@Christian Maher this is all about math and time.

So, when I sell a property, I know I will get 92% of the sales price - why?  Because I have to sell the buyer's realtor 3%...the listing agent 3%...and then about 2% in closing costs.  So, $145,000 x 92% = $133,400.  Are you ok with selling with that type of a net?

If not, then you will keep it for about 5 years.  Why?  Because in 5 years, your property will be worth $185,000.  Now you have some higher returns.

There's other decisions to consider to - owner financing for example. You aren't "dead in the water" by any means.

However, there's a piece here we don't know - how much do you owe on the property? If you don't owe anything, then it's easier. If you owe a HML at 14%, then that means you have to refinance into another loan at 8% (or so). Now, your numbers change.

The math isn't difficult, but you need to know the proper math in order to make a decision. 

Hope all of that helps in some way. 

@Rebecca Malicoat I mean, I can't see everything about you but this is because you are speaking with the wrong lenders.  This is a harder to find product, so we need some help to find good places.  Assuming you qualify, this is entirely possible.  Here's what I would suggest:

A small, local lender will be your HIGHEST probability of success when trying to find "Line of Credit" lenders on investment properties. The unfortunate thing here is that investment properties foreclose at a higher rate than primary homes so many banks just don't want the exposure to this. But it is 100% possible to find but you have to put in the time or at least know someone that ALREADY has the connection. Here's my 2 suggestions:

1. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Even facebook will have some. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you. Ask other investors in your market who they are using for this product. This isn't foolproof but it's got the highest success rate to it.
2. Calling - and then there's this option. Which is what I had to do. I had to call about 200 lenders (no exaggeration) to learn of 4 lenders who did this and I have some tips. First, when calling banks target the smallest most community based banks you can first. If you have never heard of them, and they have one location - that's a good candidate. No big, national, publicly traded banks will do this loan type. Second, do not go to the residential division. That residential department will often not speak to the commercial department. So they'll just say "sorry, we don't do it"....not even knowing that they really do! So if you ask for a "line of credit on an investment property" that should get you to the COMMERCIAL division. That's the section of the bank we want. Now, most of these smaller banks may only have 12 employees. So, don't get frustrated if they don't return your call or aren't in the office. Just call back and be friendly. Maybe play dumb a little "I don't know if I'm in the right place..." "I'm sorry to disturb you, you may not be the right person for this....", etc. And keep calling.  Keep an excel spreadsheet and track each lender.  Maybe someone can get you to the right person. Again, be prepared to call A LOT.  First option is better as you can see.

Hope that helps!

@Mateo Dabila you would take your maximum allowed concessions and then use the rest to reduce the price.  Keep in mind that reducing the price would slightly reduce your actual amount (because 3% of a lower sales prices means slightly less in concessions) but that's how you would work this one.